How to Scale up Retail and e-Commerce Business with Perfect Logistics Optimization
When scaling up a retail or e-commerce business that depends on delivering products to customers, you need to make sure that your logistics are optimized to ensure quick, accurate, and cost-effective delivery to keep your customers happy.
In fact, your entire business could depend on it.
A recent survey of 5,000 respondents showed that 31% of them were less likely to use the same company if their shipment was delayed the first time; 46% less likely to use the same company if their delivery was delayed a second time; and 38% were likely to dissuade others from using a brand if there were repeated delays.
So, as you can see, the stakes are high when it comes to getting your product delivered on-time.
The key is to optimize your logistics, and you can do just that by following some of these tips.
Implement Optimization Technology
The first step is to either implement your own optimization technology or to partner with a company that has an effective solution in place that can be customized for your needs.
For example, at Lean Supply Solutions, we use Harmony Logistics Platform.
Harmony can handle everything including:
- Forecasting
- Inbound supply chain
- Distribution and warehouse
- Order management
- Outbound supply chain
- After-market support execution
Having an optimized technology covering all the touch points of your operation is key to having an efficient logistics operation that runs efficiently to keep your customers happy.
Fulfill the Same-Day Delivery Demands
In a recent study, 49% of shoppers said that having same-day delivery makes them more likely to shop online. 96% of shoppers felt that the promise of “fast delivery” meant same-day delivery.
So, if you are offering fast delivery and it’s not same-day, 96% of your customers might be disappointed.
All told, you have about 3-4 hours to get your customer’s order shipped to ensure same-delivery and there’s no room for delays or errors.
You need to have efficient and optimized supply chain management with efficient route planning software to layout the optimal path of delivery. It’s important to work with a company like Lean Supply Solutions to make sure there’s seamless connectivity from all aspects of your supply chain management.
Gain the Upper Hand in a Competitive Market
The best way to gain the upper hand in a competitive e-commerce marketplace is to offer the lowest price, which includes free shipping. However, you still need to make money, so this all starts with reducing your expenses and streamlining the logistics process to make it more efficient.
Working with a logistics company that has app-based technology will help you maximize time, minimize expenses, and result in shipments being delivered quickly to your customers. This will help you stay competitive and build customer loyalty.
Develop a Cost-Effective Supply Chain System
Take a look at your existing supply chain management and see where you can optimize or automate to not only make your supply chain more efficient, but also make it more cost-efficient, so you can gain a competitive advantage in the marketplace. By reducing costs and increasing efficiency through artificial intelligence, you should be able to start reaping rewards, even during downtimes.
By streamlining your storage strategy, improving supplier relationships, analyzing customer demand, optimizing routes, and more, you can help boost your bottom line even during slower times when revenue valleys might occur seasonally.
The other trickle-down effect is that your order processing time will increase and your ability to upsell and cross-sell to your existing customers will multiply as they’re receiving their shipments on-time. This creates a satisfied customer that is more likely to become a repeat customer and a higher-value customer.
Look at your existing logistics program and see where the deficiencies are. If you need assistance, you can call on a supply chain management consultant, like Lean Supply Solutions, to help identify your needs and implement an optimized logistics program.
Generate Revenue Through Inbound Logistics
It might not be clear, but having your inbound logistics optimized can create an increased revenue stream from your customers.
Having a holistic approach to your entire logistics can significantly reduce costs, which can either boost your bottom line immediately or the savings can be passed on to your customers to encourage more customer loyalty.
Decreasing delivery times, even by a day, can also significantly boost your revenue numbers as your conversion rates will increase with each new customer converting into a repeat customer.
Providing quality products at a competitive price into the customer’s hands as quickly as possible can help boost your business. By working backwards, if you can speed up the delivery process, you can gain more business which could allow you get more competitive on your pricing and/or increase the quality of your product to give it increased value.
You can get all of this just from having an optimized logistics plan in place.
Integrate Your Supply Chain for Timely Demand Fulfillment
If you’re competing with the big boys, then you have to be able to have an efficient and responsive supply chain management company supporting you. Lean Supply Solutions provides effective end-to-end supply chain strategies for a range of industries and markets.
We also have full e-commerce and transportation integration to help optimize your logistics planning to help maximize your customer loyalty and satisfaction.
To get in touch with Lean Supply Solutions or to get a free no-obligation quote, contact us here.
- Published in Blog
How to Boost Customer Retention with Live Logistics Planning
As any business knows, the key to success and sustainability isn’t just acquiring new customers. Customer loyalty is the most important aspect when it comes to keeping a business running and growing. And it costs a lot more to get a new customer than it does to keep an existing one.
While product features and value, competitive pricing, customer service, and return policies can all establish customer loyalty, these days a good or bad shipping experience can influence whether a customer becomes a repeat customer. In some circles, shipping experience can be the “make-or-break” for customer loyalty.
So how do you ensure that your customers get a positive shipping experience to keep them happy and buying from you again and again? The key lies in your logistics strategy to make sure that the journey of your product from your warehouse to your customer’s hands is quick and flawless to ensure a happy and loyal customer.
These tips for better logistics management can help you achieve those goals by helping you plan a live logistics strategy.
Use Live Logistics Planning and Delivery Route Optimization
On a basic level, live logistics planning is the ability to properly track your shipments in real-time so you can see exactly where your shipment is at all times. This not only helps with tracking and determining the location of the shipment but can also help allocate that the right shipment goes on the right truck with the right driver on the right route. For example, if the shipment requires refrigeration, you should be able to clearly monitor that your product is on the correct truck.
This can also help with delivery routes. Delivery routes and loads can be tracked in real-time to allow you to maximize space on a truck that might not be at full capacity and that is on a route that matches where your product needs to be. This can allow you to “piggyback” on that truck with limited lead time to get your product to your customer easily and cost-effectively.
All of this activity can be tracked with apps from your 3PL carrier partners.
Boost Delivery Experience for Customers with Capacity Optimization
Times definitely have changed when it comes to customer expectations. In the past, for example, when a customer would order a product from mail order or a television ad over the phone, it was expected that the product would take six to eight weeks to arrive at their door.
Now, with any e-commerce transaction, not only are shipments expected quicker, but the customer expects to be able to see their shipment progress every step of the way.
Be Transparent on Shipping Prices and Conditions
While competition is fierce to not only offer top-quality products, customer service, and delivery turnaround, it’s important to be clear to your customers when it comes to shipping prices and conditions.
The customer experience can be spoiled on checkout if costs and conditions aren’t clearly disclosed before the checkout process. A sudden and unexpected cost increase in the shopping cart can result in cart abandonment. Same goes for a sudden change in delivery time. If there’s a shipping cost, disclose it immediately in the shopping process, so that your customer is aware of the cost.
The best option is to review your competition to see what they are offering. You can also justify charging higher shipping costs for expedited delivery or lower quantity on the order.
No matter what your policy, make it clear and easy for the customer to access before checking out.
Offer as Many Options as Your Customers Need
As mentioned above, you need to not only reveal your shipping prices and conditions, but you should also give options to suit your customers’ individual needs. Give them different price points for shipping speed as some customers don’t mind paying more for shipping to get their product faster.
If you offer a free shipping element for a certain spending amount (e.g. spend $100 to get free shipping), make sure to reveal that fact during the “add to cart” process so they can see how much more they might need to spend to qualify for free shipping. This can not only increase your sales but will increase customer satisfaction.
Using coupon codes to save on shipping can also work. Having a rewards program or a “your first order ships free” promotion can also help increase customer satisfaction and loyalty.
Choose the Best Shipping Partners and Logistic Tools
The key to all of this, however, is to make sure that you’re using logistics and shipping partners that can provide you with the right tools and services so that both you and your customers are satisfied with the cost, speed, accuracy, and efficiency of product shipments.
They must have the ability and the technology that allows you ease of use, transparency, and full communication capabilities for feedback.
At Lean Supply Solutions, we offer fulfillment and supply chain management solutions using the latest Harmony technology that integrates the basics like track and trace throughout the network and also provides the additional view into shipping details, availability of inventory on specific dates, and detail per box tracking to end customers.
We also have full e-commerce and transportation integration to help optimize your logistics planning to help maximize your customer loyalty and satisfaction.
To get in touch with Lean Supply Solutions or to get a free no-obligation quote, contact us here.
- Published in Blog